GCC Secretary General Jasem Albudaiwi Highlights Progress In Economic Cooperation And Integration

The Gulf Cooperation Council (GCC) is making strides in enhancing cooperation and integration among its member states, particularly in the monetary and banking sectors. This progress was highlighted by GCC Secretary General Jasem Albudaiwi during a recent meeting. He emphasised the ongoing efforts to complete economic and developmental projects aimed at achieving Gulf economic unity and elevating its status as a global financial hub.

Albudaiwi addressed the 84th meeting of the Committee of GCC Governors of Central Banks in Kuwait, chaired by Kuwait Central Bank Governor Basel Ahmed Al Haroon. He discussed the challenges posed by global economic trends and political crises, which affect member states due to their global economic openness. Albudaiwi stressed the importance of adopting necessary measures to mitigate these impacts.

In his speech, Albudaiwi shared impressive economic statistics about the GCC countries. Collectively, they rank eleventh globally in terms of gross domestic product (GDP), with a value of $2.1 trillion for 2023. This accounts for approximately 60.3% of the Arab GDP. The total foreign direct investment in the GCC reached around $649 billion by the end of 2023, representing about 30.7% of the GCC GDP.

The assets of GCC sovereign wealth funds are estimated at approximately $4.4 trillion, making up over 34% of the total assets of the top 100 sovereign wealth funds worldwide. Additionally, capital markets in the GCC accounted for 4.3% of global market capitalization in 2023, ranking seventh globally in terms of market size.

Albudaiwi noted significant growth in bank deposits within commercial banks operating in the GCC, reaching about $1,905 billion ($1.905 trillion) by the end of 2023. This marks an increase of 8.1% compared to the end of 2022. Furthermore, foreign reserve assets in the GCC grew to approximately $747 billion by year-end, reflecting a growth rate of 4.4% from the previous year.

He highlighted that these statistics demonstrate that the GCC is one of the most mature and successful regional economic blocs globally. The region's competitive indicators across various economic and developmental aspects have enabled it to establish a strong presence on both global and regional levels.

Albudaiwi also praised the resilience and capability of GCC countries to overcome challenges even under difficult circumstances. He attributed this success to wise policies that have guided them through hardships and dangers effectively.

The meeting underscored ongoing efforts towards Gulf economic unity while addressing external challenges impacting member states' economies due to their openness to international markets.

With inputs from SPA